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On Brazil’s Olympic Worries

On the surface

The 2016 Olympics will be held in Rio De Janeiro, Brazil, at the cost of 13 billion dollars. However, at this point, Brazil may not be able to fulfill its commitment: it is facing an outbreak of disease and a large recession.

Disease Disaster

The Zika virus is a disease sweeping throughout the Americas, and has incited a panic throughout the western world.

Fears over Zika might limit participation in the Olympics, with both athletes and spectators abstaining. If this holds true, it would spell disaster for the Brazilian government, which would not be able to recoup its 13 billion-dollar investment due to decreased tourism revenue. The Olympic debt will be compounded with Brazil’s already considerable debt, potentially resulting in economic downturn.

Economic Catastrophe

Inflation occurs when too much money is distributed out into society. As a result, money becomes less valuable, pricing many essential goods and services out of the reach of most consumers. This is the dilemma that Brazil finds itself in now.

Many of Brazil’s workers are underpaid or unemployed, and Olympics are only worsening the situation. In fact, Brazil laid off 1.6 million people and lowered wages of thousands of workers as a result of the Olympics. This situation, compounded with inflation, could lead to a Brazilian depression.

Economic stimulation can only occur if people are buying, and because Brazil’s workers cannot afford many necessities, Brazil finds itself spiraling down into a deep pit of economic failure.

The Olympics will spell economic disaster for Brazil. Its citizens will be unable to stimulate stagnating economy, and economic downturn will result.